For a monopolist to earn a positive economic profit, price has to exceed average total cost at the level of output at which marginal revenue equals marginal cost
Indicate whether the statement is true or false
TRUE
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
What is the shape of average cost curve? Provide the reason for that particular shape.
What will be an ideal response?
The above figure shows the market demand curve for telecommunication while driving one's car (time spent on the car phone). The current price is 35ยข per minute. What is the consumer surplus at the current price?
A) 924.5 B) 1075 C) 301 D) 1250
The annual interest payment divided by the bond's price is the
A. Current yield. B. Default value. C. Market price. D. Risk yield.